Prince George’s County bill would let local government buy and forgive medical debt; consumer advocates urge tighter protections

A local bill for Prince George’s County would give the county and designated local entities the authority to purchase and forgive medical debt, the bill sponsor told the House Health and Government Operations Committee during a hearing.

"This legislation is enabling. It gives the county or a local entity the authority to purchase this debt, and to forgive it," Delegate Ivey said in opening remarks, describing the draft as modeled on legislation introduced last year.

The bill’s sponsor said the proposal would allow the county to set aside funds locally rather than rely on federal ARPA allocations. "Again, I view these, most of these suggestions as favorable amendments," the sponsor added, noting the bill remains under development in the local delegation.

Marceline White, executive director of Economic Action Maryland Fund, testified in opposition’s panel but said she expects to work with the sponsor. White asked the sponsor to add explicit consumer protections before the bill advances: "we just wanna make sure that given the work this committee has done that if the debt is forgiven you would also drop law suits, you would not be reported adversely to credit reporting agencies, you would stop collection actions, there'd be a sunset provision..." White described those items as "friendly amendments" she hopes to negotiate.

Committee members asked the sponsor to coordinate with the Health Services and Research Council and the county delegation while drafting amendments. Lawmakers also encouraged the sponsor to ensure provisions align with the bill that passed the full Legislature last year and to return with reprints reflecting negotiated consumer protections.

The hearing record shows supporters and opponents intend to continue negotiating text covering reporting to credit bureaus, how lawsuits and collections will be handled, and the permitted scope of debt purchasing (for example, whether it covers hospital bills only or broader outpatient charges). The sponsor confirmed discussions were ongoing and asked the committee for a favorable report at the conclusion of the hearing.

No committee vote was taken at the hearing; the item was presented for discussion and further drafting.

Ending: Committee staff and the sponsor were directed to continue meetings with Economic Action Maryland, HSRC representatives and the Prince George’s County delegation. The bill remains under consideration pending amendments and reprint.